According to Foresight News, the Bank of Korea (BoK) plans to start a wholesale central bank digital currency (CBDC) test in cooperation with the Bank for International Settlements (BIS) and other institutions. The pilot will test whether wholesale CBDC can be used as a settlement asset for tokenized deposits of commercial banks. The plan will also experiment with the programmability of tokenized deposits.
Bae Joon, deputy governor of the Bank of Korea, said, “While South Korea does not have an immediate need to issue a CBDC, we believe there are good reasons to prepare for a possible CBDC in the future.”